Moelis Australia has announced finalisation of its record-breaking purchase of Byron Bay’s Beach Hotel, and its ongoing strategy for the gaming-free coastal icon.
The Beach, aka the ‘Top Pub’, occupies a sprawling 4,585sqm site that counts 100 metres fronting Byron’s main beach. It has long been a ‘must do’ for visitors to the northern NSW region, including celebrities, to a degree a hangover of its star-studded heritage. John ‘Strop’ Cornell, former comedic partner of Paul Hogan, built the pub in the 90s for around $9 million before selling to race car driver Max Twigg in 2007 for $60 million.
The huge public bar and beer garden are accompanied by a mid-sized accommodation offering, with 25 luxury rooms, swimming pool, restaurant and function rooms, as well as onsite bottleshop.
When Twigg put the freehold to market in 2017, with Melbourne-based publican John van Haandel as operator, Impact Investment Group (IIG) set a new record for the asset class, paying $70 million.
Espousing a focus on sustainability and community, IIG sold off the pub’s 15 gaming machines, converting the space into a showcase of the region’s best food and beverage produce.
Just shy of two years after taking the deeds, IIG listed the property late 2019 in conjunction with van Haandel, spruiking the benefits of re-stapling the freehold and operation.
In November news broke financial services giant Moelis Australia had secured an exclusivity agreement for potential purchase of the Beach Hotel at Byron Bay, topping four major bidders at a record-setting price of more than $104 million.
The acquisition came as a result of an unlisted fund for wealthy private investors, which sought to raise $67 million, with the circa $37 million balance to be funded through debt. The fund projected annual returns of 13 per cent in the following five years.
Moelis Australia Hotel Management (MAHM), a subsidiary of the ASX-listed Moelis Australia (MOE), is the entity that manages the ASX-listed Redcape Hotel Group’s (RDC) 32 venues in NSW, Victoria and Queensland.
Moelis has now officially completed the acquisition and MAHM will operator the Top Pub.
The management team will reportedly invest considerable time getting to know the Beach’s existing team, community and guests, as well as “investing funds to implement operational improvements”.
Citing the proposed benefit of reuniting the ownership structures, crucial maintenance and repair work to areas that have “not received the required level of investment” will be carried out. The re-stapling is said to have enabled Moelis to plan continued investments into the future of the landmark venue.
The announcement also heralded longer-term plans that will see the venue undergo a significant revitalisation program, a new design and enhanced operational features, but MAHM has previously confirmed there are no intentions to expand the accommodation offering, and the absence of gaming will continue.
Dan Brady, CEO of MAHM and Redcape, says the high-ticket asset is to be the continued heart of town.
“The Beach Hotel Byron Bay is a much-loved local institution, and we are privileged to be its new custodians.
“We have a clear and exciting vision for the hotel – one that places the local community firmly at its core – and are committed to ensuring that the Beach Hotel continues to enrich the lives of those around it for many years to come.
“We have a great responsibility to do the venue justice, and want to give it the time, energy and respect it so rightly deserves.”
Moelis has not ruled out the possibility of further funded pub acquisitions.
